January 02, 2008	Wednesday	Zilhaj 22, 1428

KARACHI, Jan 1: Cotton prices on Tuesday remained stable around the previous levels but in physical trading some of the deals were finalised well above the official spot rates depending on quality premiums, analysts said.

In physical trading, some of the fine lots were traded as higher as Rs3,200 per maund, signaling an imminent price flare-up after normalcy returns to the law and order situation.

After a gap of five days, stray business was reported in the ready section, although delivery problems were still there, they said.

As trading in lint in the interior of Sindh remained suspended owing to disturbed conditions during the last couple of days, activity resumed as some deals were reported, they said, adding mormalcy is returning fast to the market there.

According to local market sources, six tankers laden with 6,000 bales of lint cotton and about 20,000 bales in the godowns of Kotri textile mills were burnt during the last week’s violence.

Details of damage to cotton in other areas is reaching here, which could make it more expensive owing to shortage of the ready stuff, they said.

However, the general perception is that the trading is expected to get normal possibly by the next week as spinners and mills may not face delivery problems.

Spinners and mills say physical shipments of some of the export consignments of textiles were delayed owing to city turmoil and there are reports that some of the leading importers are not inclined to sign forward contracts for the first quarter of the new year owing to fears about the delayed shipments.

But some others said importers of Pakistani textiles are expected to be back in buying arena as Easter and new year holidays are now over.

Official spot rates, therefore, held unchanged at Rs3,025 per maund, but in the ready section most of the deals were done well above them.

The following are some of the deals on Tuesday evening:

SINDH TYPE: 3,000 bales; upper Sindh at Rs3,200; 800 bales, and Khipro at 3,150.

PUNJAB VARIETY: 4,000 bales, Sadiqabad at Rs3,150 to 3,200, 400 bales; Haroonabad at 3,115 and 400 bales, Gojra at 3,100.